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                                                  DA 98-169
                                BEFORE THE
                     FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C.  20554

In the Matter of)
     )
COMSAT CORPORATION    )  File No. 73-SAT-LA-98                     
     )
Application for authority to participate     )
in the launch of the Inmarsat-3 (F-5)  )

                          ORDER AND AUTHORIZATION

     Adopted:  January  29, 1998                      Released:  January 30, 1998

By the Chief, Satellite and Radiocommunication Division:

     1.  The Commission has under consideration the above-captioned application filed by
COMSAT Corporation on January 5, 1998, for authority to participate in the launch,
positioning and in-orbit testing of the Inmarsat-3 (F-5) satellite.  The application appeared on
Public Notice dated January 15, 1998.  No comments were filed.

     2.  Authority for COMSAT to participate in Inmarsat's procurement and construction
of Inmarsat-3 (F-5) satellite was granted in an order (FCC File No. CSS-91-001-LA)
released September 25, 1992.  The current Inmarsat-3 (F-5) deployment plan shows a launch
scheduled to take place during the month of January 1998, utilizing an Ariane launch vehicle. 
The plan also indicates that the final apogee motor firing will take place over the
Mediterranean Ocean followed by a one-day drift of the satellite to its operating orbit
location at 25ø East Longitude.  The test of the spacecraft bus will be conducted during this
initial drift period.  The communications payload tests will be performed at this location and
will occur over a two week period.  The Inmarsat-3 (F-5) satellite is to be located at 25ø
East Longitude and will  serve as a spare satellite for the INMARSAT operational satellites
to support Inmarsat maritime, aeronautical, and land mobile satellite services.  
     3. The estimated costs associated with the Inmarsat-3 (F-5) satellite are as follows:

                     Cost of Spacecraft Manufacture            
                     (including delivery price, engineering
                     changes and amendments)      $   57.7 million

                     Launch Support Service       $     2.6 million

                     Performance Incentives       $   25.6 million

                     Lease Interest Cost, Capitalized   $   23.2 million

                     Consultancy $    2.6 million
  
                     Launch services   $   67.5 million
 
                     Launch Insurance  $    8.4 million

                     In-house Costs    $    8.0 million

                     TOTAL Inmarsat cost          $ 195.6 million

                     TOTAL COMSAT cost (based on current
                     ownership share of 23.0%)    $  45.0 million

     4.  The Commission has already determined that Comsat's participation in the
procurement of the Inmarsat-3 (F-5) satellite is required to meet traffic requirements.  We,
therefore, find that the public interest will be served by the grant of Comsat's application for
the launch, positioning and in-orbit testing of the Inmarsat-3 (F-5) satellite, subject to the
conditions set forth below.

     5.  Accordingly,  IT IS ORDERED that Comsat's application to participate in the
launch and test program of the Inmarsat-3 (F-5) satellite at 25ø East Longitude IS
GRANTED subject to the following terms and conditions:


     (a) This  authorization is limited to the drift, launch and test program at 25ø East
Longitude.  Any change in the authorized locations due to a launch delay or other
circumstances will be considered upon a proper request by Comsat;

     (b) Comsat shall furnish via the Inmarsat-3 (F-5) satellite only those channels of
communication for commercial service which have been, or may be, authorized by separate
order of the Commission under Section 214 of the Communications Act of 1934, as
amended;

     (c) Within 30 days after completion of the testing  program, Comsat shall provide the
Commission with a summary report of its results and, upon request, shall make the detailed
test data available;

     (d) Conduct of the drift, launch and test program authorized herein shall be without
interruption of commercial satellite service now authorized at U.S. earth stations;

     (e) Neither this authorization nor any right granted herein shall be assigned or
otherwise transferred without approval of the Commission; and

     (f) Unless extended or modified for good cause, this authorization shall terminate one
year after the release date of this order.

     6.  This order is issued pursuant to Section 0.261 of the Commission's Rules, 47
C.F.R.  0.261, and is effective upon adoption.  Petitions for  Reconsideration under Section
1.106 or applications for review under Section 1.115 of the Commission's Rules, 47 C.F.R.
 1.106 and  1.115, may be filed within 30 days of the date of this order (See 47 C.F.R. 
1.4(b)(2)).

     FEDERAL COMMUNICATIONS COMMISSION




     Thomas S. Tycz
     Chief, Satellite and Radiocommunication Division
     International Bureau